Faltering Banks Push Stocks Down

Financials tumble despite solid report from Goldman Sachs
By Sam Gale Rosen,  Newser Staff
Posted Jun 17, 2008 3:15 PM CDT
The Nasdaq MarketSite is shown Tuesday, June 17, 2008, in New York. Stocks declined Tuesday as investors reviewed worrisome data that underscored the drag of higher energy prices on the economy.    (AP Photo/Mark Lennihan)
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(Newser) – The markets fell today, led by plunging financials and bank stocks, despite a solid second-quarter report from Goldman Sachs. "There is a lack of clarity at every level of the financial system right now, from regulators to companies," a floor trader told the Wall Street Journal. The Dow fell 108.78 to 12,160.30, the Nasdaq 17.05 to 2,457.73, and the S&P 500 9.21 to 1,350.93.

While Goldman Sachs reported lower-than-expected losses, other banks were hit hard. Meanwhile, inflation continues to be a serious problem. "It's obvious that the price of food and energy is beginning to hit the consumer, threatening to cut into purchases of other goods and services that drive corporate profits," says the president of a brokerage company.